India’s largest bank State Bank of India on Friday reported a 137% year-on-year rise in net profit at Rs 3,752 crore during the April-June quarter against Rs 1,583 crore a year ago on on strong credit demand, but a rise in bad loans pulled down its shares.
The bank’s net NPAs rose to 2.2% of total loan book at the end of June against 1.6% a year ago. In value terms, net NPAs increased to Rs 20,324 crore during the quarter compared to Rs 12,435 crore in the corresponding period of the last fiscal year.
Gross advances of the bank increased to Rs 945,819 crore at the of June 2012 from Rs 788,153 crore as of June 2011, reflecting a healthy growth of 20%.
“We will meet the loan growth of 16-18% this fiscal year, though I am not sure about corporate loan target due to the poor investment climate and the resultant slowdown in corporate loan demand,” said Chaudhuri. “But I hope that retail loan book, especially auto and retail, will make up for the corporate slowdown.”
Net interest income (the difference between interest earned and interest paid) grew by 15% to Rs 11,119 crore during the quarter against Rs 9,699 crore in the year-ago period, whereas non-interest income marginally fell to Rs 3,499 crore from Rs 3,534 crore.
Total income of the bank rose to Rs 32,415 crore in the quarter against Rs 27732 crore, showing a growth of 17%. SBI’s shares fell 4% to close at Rs 1,888 on the BSE on Friday.